Signal Korea's employment rate falls to 61.7 percent and unemployment to 2.5 percent by 2033

Summary

The report's overall balance projects Korea's employment rate for people aged 15 and over to fall from 62.6 percent in 2023 to 61.7 percent in 2033. That is a decline of 0.9 percentage points over the outlook, reflecting employment growth that lags the growth of the adult population. The unemployment rate is projected at 2.7 percent in 2023 and 2028 and then 2.5 percent in 2033. The combination points to a labour market that tightens because fewer people are available, not because demand for workers expands strongly. KEIS uses these aggregates as the starting point for its argument that latent workers must be drawn into the labour market.